When you’re waiting for the proceeds of a business contract or property sale and require immediate access to cash, bridging finance is the answer.

Here’s what you need to know about the short-term funding solution.

What is bridging finance?

Bridging finance is a type of loan backed by expected income. Funds are advanced to clients who can prove money owing to them.

Proof can be in the form of a signed deed of sale, product purchase agreement, RAF settlement claim agreement or tender document.

Who can apply for bridging finance in South Africa?

Anyone who has a pending lump sum payment can apply for bridging finance. It may be for the sale of property or any other situation where funds are not released immediately.

How long does it take to get bridging finance?

That depends upon the lender and the criteria used to assess the application.

Banks typically take five days or more to evaluate a client’s financing requests. Alternate lenders are known to release funds within 24 hours.

What can bridging finance be used for?

Again, it depends on the finance provider. In some cases, lenders pay for purchases on behalf of the client or restrict how the funds are spent.

More flexible financial services companies allow the capital to be used to cover any personal or business expenses.

How do I get bridging finance in South Africa?

Most bridging finance providers in South Africa offer quick and easy online loan applications.

Personal or business information and supporting documents can be uploaded and submitted via their websites.

What costs are involved?

Lenders typically charge an initiation fee, plus interest, on the short-term financing.

If the repayment terms are monthly, an additional service fee may be levied each month.

How much bridging finance can I apply for?

Any amount from R10,000 to R5,000,000 or more.

Depending upon the loan provider, financing is available up to a prescribed rand value, or as a percentage of the incoming funds.

Is bridging finance safe?

Yes, bridging finance is safe. As the loan is secured by the incoming funds, it’s a low-risk method of raising capital over the short-term.

How long is a bridging finance loan?

The loan is usually paid off in one lump sum as soon as the incoming funds are available. Some lenders offer monthly repayment plans of up to six months.

Does your credit rating have an impact on raising bridging finance?

No. Alternate lenders do not take a client’s credit score or financial history into account.

Where to get bridging finance in South Africa

Lamna offers bridging finance backed by the sales of property and RAF settlement agreements.

No restrictions are imposed on how the borrowed funds are used. We do not conduct credit checks.

We offer a straightforward loan application process online. Supporting documents are kept to a minimum.

Our interest rates are affordable, there are no hidden fees and funds are available on the same day.

Call Lamna now on 086 111 2866 to find out more. We’re a registered credit provider with branches in Cape Town, Johannesburg, Pretoria, Durban, Port Elizabeth and Gaborone.

Asset-backed loans with Lamna

As well as bridging finance in South Africa, Lamna offers fast, discreet loans against the value of a wide range of assets, from luxury watches and jewellery to vehicles or artwork.

For more information about using an asset to secure a short-term loan, contact us on 086 111 2866 or simply complete and submit our online application form.